The European Observatory on Infringements of Intellectual Property Rights has published a report on the IP litigation insurance landscape. The report was drafted for the Commission, but is now available to everyone. It can be read and downloaded here (PDF).

The report is based on an online survey of users, desk research and information provided by IP offices.

In the survey, 17 out of 25 respondents said they are aware of IP insurance products and 14 respondents were able to name insurance providers offering IP insurance products. Lloyds of London was the most frequently mentioned provider.

Four responses suggested that these products are not very popular, but three suggested that their popularity is growing. The responses overall suggest that IP insurance is more popular in regions such as Australia, China, Japan and the US. The main reason given for not purchasing IP litigation insurance was cost.

The report concludes:

IP insurance products do exist in Europe and there is a reasonable level of awareness of the availability of these products among IP right holders. Despite this existing level of knowledge, there remains a strong need to raise awareness about the details of IP insurance options, in particular amongst SMEs. While some practical experience could be gathered in some European countries, IP insurance schemes remain special niche products with limited use by IP rights holders, and it seems that insurance companies continue to struggle to reach critical mass with these types of products.

IP insurance products are not necessarily linked to a particular IP right but, rather, cover a particular product or product line and encompass all of its associated IP rights. The level of popularity of IP insurance varies depending on the territory and size of the IP rights holder. However, in general, popularity has been low for various reasons, cost being the most prominent one. Lowering insurance premiums appears to be a key factor in making these types of products more attractive for IPR holders.

The likely impact of the unitary patent on the popularity of IP insurance products remains uncertain for the time being. However, there appears to be a positive perception insofar as the unitary patent represents an improved business opportunity for insurance providers to offer existing products on a broader geographical scope.